Ginebra San Miguel (GSMI) Q2 2026 earnings summary

Executive summary

• Philippine GDP growth slowed to 2.6% in H1 2026, with elevated inflation, peso depreciation, and Middle East disruptions impacting sentiment and business confidence.

• Despite macro headwinds, core net income rose 48% and operating income increased 17%, driven by robust topline growth in energy, food, spirits, and infrastructure.

• Reported net income fell 44% due to absence of prior year one-off gains and a PHP 16.5B forex loss; adjusted net income up 48% to PHP 54.2B.

• Sustainability initiatives advanced, including climate risk assessment, net zero roadmap, and social programs, with measurable outcomes and international recognition.

Financial highlights

• Consolidated revenues reached PHP 964.1B, up 34% year-on-year, led by Petron, energy, and food businesses.

• Operating income at PHP 102.3B, up 17% year-on-year; EBITDA rose 12% to PHP 141.9B.

• Reported net income at PHP 37.7B, down 44% due to non-core items; core net income at PHP 54.2B, up 48%.

• Total assets at PHP 3.0T, liabilities at PHP 2.2T, equity at PHP 794B, cash at PHP 454B, and interest-bearing debt at PHP 1.8T as of June 30, 2026.

Outlook and guidance

• Cautiously optimistic for H2 2026, expecting improved demand in BER months but no full recovery due to lingering market challenges.

• Ongoing investments in infrastructure, energy transition, and capacity expansion across segments; CapEx for 2026 projected above PHP 200B, with power segment accounting for about half.

• No immediate impact expected from proposed excise tax increases; no planned price hikes for beer or spirits to preserve market share.

• Power segment EBITDA from new hydro and solar projects expected to exceed PHP 50-60B annually at full capacity.